THE MANY REASONS
TO CONSIDER A
LIVING TRUST While Millions of People Understand the Benefits of Creating A Living Trust, There Are Just As Many Who Are Unsure of Whether Or Not This Is Right for Them
STEPHEN M WALTAR BELLEVUE WASHINGTON ESTATE PLANNING ATTORNEY
While millions of people understand the benefits of creating a living trust and have subsequently moved forward with this process, there are just as many who are unsure of whether or not this is right for them. If you are on the fence regarding which steps to take next, the best thing you can do is compare the pros and cons of creating a living trust. Note: there are some questions that you may not be able to answer on your own, so it would be in your best interest to contact an estate planning attorney as soon as possible. This person can give you advice on what you should be doing, how to move forward, and whether or not a living trust is something that will benefit you and your loved ones.
A LIVING TRUST TO AVOID PROBATE Although you may have passed on, it is important to remember that your assets will be left behind to your loved ones. Do you want your beneficiaries to be faced with the probate process if it can be avoided? Of course not. With a living trust, your assets will not go through probate. In turn, this means a faster distribution to your heirs. Along with this, it is much less stressful. With a will, the probate process can take many months or years to be completed. With a living trust in place, this is cut down to a few weeks. Your trustee is
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responsible for paying your debts and distributing your assets based on your instructions. Note: with a living trust, you still have the power to select a guardian for your children.
A LIVING TRUST APPOINTS SOMEONE TO OVERSEE YOUR AFFAIRS Are you worried about what will happen when you pass on or if you become incapacitated? A living trust makes this very simple, since the trustee will be in position to automatically assume control. On the other side of the things, there are people who have a will without a durable power of attorney. The problem with this is simple: the court is able to appoint someone to oversee your finances, leaving you without any control. Who is to say that the court will appoint the person you would have selected? With a living trust, you can handpick the person (known as the trustee) who is going to manage your affairs, all without any intervention from the court.
PRIVACY WITH A LIVING TRUST When you compare the differences of a living trust and will, don’t be surprised if you are intrigued by the privacy benefits associated with a living trust.
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A living trust is not made public upon your death. A will is public record, meaning that others can take a closer look at your financial situation including how you distributed your assets.
PROTECTION FROM COURT CHALLENGES There is no denying the fact that a court challenge of a living trust is rare, but this can and does happen from time to time. If there is a lawsuit, it is more difficult to attack a living trust than a will. Anybody who wants to file a lawsuit regarding the validity of your living trust would have to prove the following: A flaw in the trust document, such as a signature that has been forged When you created the trust you were mentally incompetent or influenced by a third party
QUESTIONS FOR AN ESTATE PLANNING ATTORNEY Are you ready to create a living trust? Do you simply have questions about the process, including if this is the right decision for somebody in your shoes? It is better to learn as much as possible from a legal professional than it is to assume that you know the ins and outs of creating a living trust. Here are several questions to ask an estate planning attorney: In your opinion, should I create a living trust? What are the benefits of a living trust for somebody in my current position? Can you explain any potential drawbacks of creating a living trust? Can you compare and contrast a living trust and a will?
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How much experience do you have creating living trusts for those in my position? What is the fee associated with creating this document? By asking these types of questions, you can obtain the information you need to make an informed decision regarding the creation of a living trust. With so many reasons to consider a living trust, you should not delay any longer. At the very least, contact an attorney who can provide you with more detailed information as well as a plan you can follow if this is something you want to consider in the future.
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About the Author Stephen M. Waltar Steve was born on March 15, 1962, in Boston, Massachusetts. His true roots, however, are firmly planted in the Pacific Northwest. Steve grew up in Richland, Washington and moved to Seattle in 1980 to attend college (Seattle Pacific University, B.A., cum laude, 1984). He lived in Princeton, New Jersey for three years during graduate school (Princeton Theological Seminary, M.Div., 1988). Steve returned to Puget Sound to attend law school in Tacoma (University of Puget Sound/Seattle University, J.D., 1993). He was admitted to the Washington State Bar in 1994. Steve is also admitted to practice in United States District Court, Western District of Washington. EXPERIENCE Prior to establishing his own law firm in 2000, Mr. Waltar spent four years at an exclusive estate planning law firm in Seattle. Mr. Waltar limits his law practice to areas associated with estate planning, including trusts, estate tax law, wills, probate, asset protection, business incorporation & succession planning, charitable giving, and disability planning. Before he limited his practice to estate and business planning, Mr. Waltar was with Rosenow, Johnson, Graffe, Keay & Moniz, focusing his practice on general litigation, insurance defense, and family law. Before joining Rosenow Johnson, he supervised the family law department at Mulligan & Associates, P.L.L.C. Steve is a popular and entertaining speaker at estate planning seminars, and has taught both professionals and lay people estate planning and charitable giving. Steve has given over 100 seminars and talks and has taught courses at the University of Washington, Seattle University, Seattle Pacific University, Northwest University, and Bellevue Community College. He has spoken to private and public employees as well as to numerous communities, civic and religious groups. Steve has been a co-host and guest on two syndicated radio programs. He is currently publishing his first book on Estate Planning. Stephen M Waltar, PS www.waltar.com Hidden Valley Office Park 1750 112th Avenue NE, Suite C245 Bellevue, WA 98004 Phone: (425) 455-6788 Fax: (425) 450-4601
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